Periodic e-mail delivery of bank account information

ABSTRACT

A computer-based banking method including the steps of (1) creating an account for a customer into which funds may be deposited and from which funds may be paid upon request to designated payees; (2) allocating funds deposited by the customer to the account; (3) transferring funds upon request from the account to designated payees subject to fund availability, wherein the allocated funds are debited by amount of funds transferred to provide a lowered account balance against which future transfers are evaluated; and (4) automatically sending a periodic e-mail to the fund depositor with information including the lowered account balance. Accounts in which monthly itemized statements are generated that may be accessed by the customer using their home personal computer are also disclosed.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a Divisional of U.S. application Ser. No. 10/695,561filed Oct. 28, 2003, which is a Continuation of U.S. patent applicationSer. No. 09/461,249 filed Dec. 15, 1999, which is a Continuation of U.S.patent application Ser. No. 08/876,929 filed Jun. 16, 1997, now U.S.Pat. No. 6,044,360, which is a Continuation-In-Part of U.S. applicationSer. No. 08/585,173 filed Apr. 16, 1996. The disclosures of eachapplication is incorporated by reference.

BACKGROUND OF THE INVENTION

The present invention relates to systems for transferring funds, such asperiodic allowance payments, by an account holder from a pre-establishedaccount to a third party recipient for the funds designated by theaccount holder. In particular, the present invention relates to systemsfor transferring funds in which the account holder is provided withcontrol over how the funds are spent by the third party recipient.

ATM and debit card systems have gained wide acceptance as means forperforming currency transactions. In addition to providing the abilityto withdraw cash from a bank account or a credit card line, it is nowpossible to pay for a point-of-sale transaction with an electronic fundstransfer. The computer networks that support ATM and debit card systemsmake it possible to design transactions that go beyond the conventionalexchange of cash for goods or services.

For example, U.S. Pat. No. 5,287,269 discloses a system that uses a cardsimilar to a debit card to control access within a recreational facilitysuch as an amusement park. The card replaces the tickets or tokensconventionally used to control access to amusement rides and arcadegames. Thus, a parent may provide a child with a pre-paid card encodedwith sufficient credit to ensure an enjoyable day of entertainment.

U.S. Pat. No. 5,321,241 discloses a system that uses a card similar todebit card to track the spending of casino promotional funds byindividual gamblers. The purpose of the card is to prevent gamblers fromspending promotional funds on food, or even in other casinos, and toensure that the promotional funds are only spent on gambling within theissuing casino.

U.S. Pat. No. 5,350,906 discloses a debit card system in which funds maybe electronically transferred by an account holder to a third partyrecipient by the issuance of a fixed currency limit debit card to therecipient at his or her location. One advantage to this system is thatthe recipient need not have a preestablished ATM or debit card accountwith the issuing bank or other institution. The system may be used byparents to issue periodic allowance payments or spending money, forexample, to a son or daughter away at college in a distant city.

In each or the foregoing systems, however, the funds transferor is notprovided with control over how the money is spent by the transferee, orprovided with an accounting thereafter. For example, the parent who buystheir child the pre-paid card for amusement park access of U.S. Pat. No.5,287,269 has no way of preventing the child from spending the entirecard on video games and cotton candy, or of even knowing later whetherthis has happened.

The casino issuing the card of U.S. Pat. No. 5,321,241 may be willing toallow a portion of the funds to be spent on food or lodging if a limitcould be established, and if it could later know how much money wasactually spent on gambling. It would also be useful for the casino toknow how the money was actually gambled for purposes of including agambler on more specific future promotions, such as a slot machinepromotion or a black jack promotion.

A parent issuing the fixed currency limit debit card of U.S. Pat. No.5,350,906 to a son or daughter away at college has no way to ensure thatmost of the funds are spent at the college bookstore and not withdrawnas cash or spent on rounds of drinks at the local pub. There is no wayfor the parent to know how the money was actually spent.

A need exists for a system in which an account holder may electronicallytransfer funds from a preestablished account to a third party recipientwith limits set on how the money may be spent and then receive asubsequent accounting of how the money was actually spent.

SUMMARY OF THE INVENTION

This need is met by the present invention. It is an object of thepresent invention to provide a system and a computer-based method inwhich account holders may transfer funds from preestablished accounts tothird party recipients and then receive an itemized statement of how therecipients spent the funds.

Another object of the invention is to provide a system and acomputer-based method in which account holders may transfer funds frompreestablished accounts to third party recipients and set limits on thegoods or services for which the funds are spent, or on the amounts whichmay be spent for certain goods or services.

Therefore, according to one aspect of the present invention, a system isprovided for use in transferring funds from preestablished accounts byaccount holders to third party recipients, including:

-   -   controller processor for processing data according to command        instructions and for creating customer account files, the        controller processor having a data storage device associated        therewith for storing file records of the amounts of funds        deposited by the account holders in the preestablished accounts,        each file containing a primary file into which the amount of        funds deposited is recorded, and a secondary file into which at        least a portion of the amount of the deposited funds may be        transferred and recorded by the controller processor in response        to command instructions issued by the account holder, wherein        the amount of the funds transferred to the secondary file may be        electronically transferred by the controller processor to payees        selected by the third party recipients in response to command        instructions issued by the third party recipients, and wherein        the system further includes a data storage device associated        with the controller processor for storing file records of        information on each selected payee of funds from the secondary        file and the corresponding payment amount;    -   at least one input device for supplying to the controller        processor command instructions from the account holders and        third party recipients; and    -   an output device for periodically supplying to each account        holder the file record containing information on each selected        payee of funds corresponding payment amounts.

Preferred systems in accordance with this aspect of the presentinvention also permit account holders to exclude certain fund transferpayees designated individually or by the type of establishment, or toestablish periodic transaction limits by the single transaction, day,week, month or so forth. In the preferred systems, the controllerprocessor is adapted to process command instructions from the accountholder to store in the data storage device associated therewithinformation on electronic fund transfer payees subject to periodiclimits on the amount of funds that may be transferred, and to inquireinto each electronic fund transfer command instruction issued by thethird party recipient to determine whether the payee is subject to atransaction limit below the transfer amount requested, with thecontroller processor being adapted to complete the electronic fundtransfer when the payee is not subject to a transaction limit below theamount requested, and to discontinue the electronic fund transfer whenthe payee is subject to a transaction limit below the amount requested.

The system of the present invention contemplates that the third partyrecipients designated by account holders will be issued magnetic cardsto access the funds that have been set aside on their behalf. Therecipients can then withdraw the funds as cash from ATM machines, or payfor point-of-sale purchases of goods and services by electronic fundtransfer. At the same time, the account holder may limit how much of thefunds that have been set aside may be withdrawn as cash, or even blockthis entirely, with the set-aside funds only being accessible byelectronic funds transfer.

Accordingly, preferred systems in accordance with the present inventionwill further include a magnetic card encoded with an identifiercorrelated to the secondary file of the preestablished account andissued to the third party recipient. When the magnetic card is issued tothe son or daughter of an account holder to access funds set aside as anallowance payment, the card, in effect, becomes an allowance card. Undersuch circumstances, the account holder may arrange for the transfer offunds weekly or monthly from the primary file of the preestablishedaccount to the secondary file as a form of an allowance payment.

Thus, parents making allowance payments to a son or a daughter using thesystem of the present invention may limit the amount of the payment thatmay be withdrawn from ATM machines as cash. And, because banking andcredit card institutions have already created an identification systemwith electronic fund transfer networks categorizing payees by the typesof goods or services they provide, limits can be placed on the amountthat is spent in restaurants daily, weekly or monthly using a debitcard, and spending in pubs or taverns could be prohibited entirely. WhenATM cash withdrawals are also blocked, spending of an allowance budgeton alcohol or tobacco may be effectively blocked by a parent. At thesame time, unlimited spending could be permitted, for example, atcomputer software stores, or at a college book store.

Similarly, a casino issuing promotional funds using the system of thepresent invention may limit the amount of funds that are spent on food,lodging or particular games of chance. At the same time, unlimitedspending on, for example, slot machines, could be permitted.

But the primary advantage of the present invention is that an itemizedstatement is issued to the account holder periodically, i.e., weekly ormonthly, providing an accounting of how the set aside funds were spent.In the situation of a parent making an allowance payment, a statementwould be sent, similar to a bank or credit card statement, listing ATMcash withdrawals, as well as electronic fund transfer payees. A preciseaccounting would be provided of how much of each allowance payment waswithdrawn as cash, how much was spent in identified restaurants, and howmuch was spent on school supplies.

Nevertheless, the present invention also includes systems in which suchan accounting is not provided, with the primary advantage being theability to limit electronic fund transfer payments to certain payees.According to this aspect of the present invention, a system is providedfor use in transferring funds form preestablished accounts by accountholders to third party recipients, including:

-   -   controller processor for processing data according to command        instructions and for creating customer account files, the        controller processor having a data storage device associated        therewith for storing file records of the amounts of funds        deposited by the account holders in the preestablished accounts,        each file containing a primary file into which the amount of        funds deposited is recorded, and a secondary file into which at        least a portion of the amount of the deposited funds may be        transferred and recorded by the controller processor in response        to command instructions issued by the account holder, wherein        the amount of the funds transferred to the secondary file may be        electronically transferred by the controller processor to payees        selected by the third party recipients in response to command        instructions issued by the third party recipients, and wherein        the system further includes a data storage device associated        with the controller processor for storing file records of        information on each selected payee of funds form the secondary        file and the corresponding payment amount and wherein the        controller processor is adapted to process command instructions        form the account holder to store in the data storing device        associated therewith information on electronic fund transfer        payees subject to periodic limits on the amount of funds that        may be transferred; and    -   at least one input device for supplying to the controller        processor command instructions from the account holders and        third party recipients;    -   wherein the controller processor is adapted to inquire into each        electronic fund transfer command instruction issued by the third        party recipient to determine whether the payee is subject to a        transaction limit below the transfer amount requested, to        complete the electronic fund transfer when the payee is not        subject to a transaction limit below the amount requested, and        to discontinue the electronic fund transfer when the payee is        subject to a transaction limit below the amount requested.

The present invention also includes systems in which the account holderis also essentially the “bank,” such as, for example, when a casinoissues promotional funds to a gambler but restricts how such funds maybe used. According to this aspect of the present invention, a system isprovided for providing promotional funds for use by customers,including;

-   -   controller processor for processing data according to command        instructions and for creating customer account files, the        controller processor having a data storage device associated        therewith for storing file records of the amounts of funds        issued to customers, wherein the promotional funds may be        electronically transferred by the controller processor to payees        selected by the customers in response to command instructions        issued by the customers, and wherein the system further includes        a data storage device associated with the controller processor        for storing file records of information on each selected payee        of funds and the corresponding payment amount and wherein the        controller processor is adapted to process command instructions        to store in the data storage device associated therewith        information for each customer on electronic fund transfer payees        subject to periodic limits on the amount of funds that may be        transferred; and    -   at least one input devices for supplying to the controller        processor command instructions from customers;    -   wherein the controller processor is adapted to inquire into each        electronic fund transfer command instruction issued by customers        to determine whether the payee is subject to a transaction limit        below the transfer amount requested, to complete the electronic        fund transfer when the payee is not subject to a transaction        limit below the amount requested, and to discontinue the        electronic fund transfer when the payee is subject to a        transaction limit below the amount requested.

In the example of the casino given above, payees selected by customersmay include a casino restaurant, hotel, souvenir shop, slot machine,black jack table, and the like. The system of the present inventionpermits a casino to retain control over how promotional funds given to acustomer are allocated and spent.

According to another aspect of the present invention, computer-basedmethods for operating the systems of the present invention are provided.Methods in accordance with this aspect of the present invention includethe steps of:

-   -   creating a customer account file including a primary file        containing a record of funds deposited by an account holder;    -   establishing a secondary file in the customer account file in        response to command instructions from the account holder;    -   designating a third party recipient permitted access to the        secondary file in response to command instructions form the        account holder;    -   transferring to the secondary file in response to command        instructions from the account holder at least a portion of the        record of funds contained in the primary file representing        deposited funds accessible to the third party recipient;    -   storing a file record of information on every electronic fund        transfer executed by the third party recipient form the        secondary file, including information on the transfer payee and        the corresponding payment amount; and    -   providing periodically to the account holder an itemized        statement generated from the file record of executed electronic        fund transfers from the secondary file.

Preferred methods according to this embodiment of the invention providefor the establishment of limits in the amounts of transactions. Suchpreferred methods further include the steps of designating in responseto command instructions from the account holder, payees of funds to bewithdrawn by third party recipient subject to a limit on the amount offunds that may be withdrawn, and verifying each withdrawal from thesecondary file requested by the third party recipient to determinewhether it is subject to a limit in the amount of the transaction, andwhether that limit has been exceeded. The method will further includethe step sending a disapproval signal if there is a limit that isexceeded, and may optionally include the step of sending an approvalsignal if there is no limit, or if there is a limit that has not beenexceeded.

This aspect of the present invention also includes methods which providefor the establishment of limits in the amounts of transactions withoutgenerating an itemized statement to the account holder of withdrawals bythe third party recipient. Methods according to this embodiment of theinvention include the steps of:

-   -   creating a customer account file including a primary file        containing a record of funds deposited by an account holder;    -   establishing a secondary file in the customer account file in        response to command instructions from the account holder;    -   designating a third party recipient permitted access to the        secondary file in response to command instructions form the        account holder;    -   transferring to the secondary file in response to command        instructions from the account holder at least a portion of the        record of funds contained in the primary file representing        deposited funds accessible to the third party recipient;    -   designating in response to command instructions from the account        holder, payees of funds to be withdrawn by third party recipient        subject to a limit on the amount of funds that may be withdrawn;        and    -   verifying each withdrawal form the secondary file requested by        the third party recipient to determine whether it is subject to        a limit in the amount of the transaction, and whether that limit        has been exceeded.

This method will also further include the step sending a disapprovalsignal if there is a limit that is exceeded, and may optionally includethe step of sending an approval signal if there is no limit, or if thereis a limit that has not been exceeded.

This aspect of the present invention will also include computer-basedmethods in which the account holder essentially functions as a “bank.”Methods in accordance with this aspect of the present invention willinclude the steps of:

-   -   providing a customer account file containing a record of funds        issued to customers;    -   designating payees of funds to be withdrawn by customers subject        to a limit on the amount of funds that may be withdrawn; and    -   verifying each withdrawal from the customer account file        requested by customers to determine whether it is subject to a        limit in the amount of the transaction, and whether that limit        has been exceeded.

This method will also further include the step sending a disapprovalsignal if there is a limit that is exceeded, and may optionally includethe step of sending an approval signal if there is no limit, or if thereis a limit that has not been exceeded.

The system of the present invention is not limited to preestablishedcurrency accounts at banking institutions, but also includes creditaccounts, within which the account holders may establish a sub-line ofcredit that may be drawn against by a third party recipient. Thus, forpurposes of the present invention, the term “funds” is defined asincluding credit lines extended to account holders and third partyrecipients, as well as currency deposited by account holders. Theaccount holder may require the third party recipient to repay the drawncredit, and the account may thus be employed to control a young person'suse of credit, but at the same time teach them how to use the creditresponsibly.

The system of the present invention thus provides a tool for a wageearner to provide spending money to a dependent, and at the same timeteach the dependent how to budget their money and manage cash flow,while maintaining some control over how the money is spent. Initially,the limits on the types of purchases may be employed as guidance withrespect to the appropriateness of purchases, and to discipline thedependent to control their spending habits.

Other features of the present invention will be pointed out in thefollowing description and claims, which disclose the principles of thepresent invention and the best modes which are presently contemplatedfor carrying them out.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram of the representative system hardware of thepresent invention; and

FIG. 2 is a flow chart showing the operation of the system of thepresent invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

Referring now to the drawings, and initially FIG. 1, the system of thepresent invention is comprised of a computer processor 12, hereinreferred to as a controller processor, coupled to a data storage device14 such as a memory device and in communication through phone line 15with at least one input device 16 through which fund transfer commandinstructions are received and through phone line 17 with at least oneoutput device 18 through which electronic fund transfers are executed.The embodiment depicted in FIG. 1 also includes output device 20 forgenerating a file record containing information on electronic fundtransfer payees, which is described in greater detail hereinafter.

The system may be a local, entirely self-contained internal network ofinput and output devices under the absolute control of the systemoperator, as would be the case when the system is employed by a casinoor an amusement park. Alternatively, the system may be in communicationwith an external network of input and output devices, such as a banking,credit or ATM network.

The controller processor of the present invention can be essentially anymainframe computer processor or plurality of processors, or any computerworkstation capable of interfacing with the network to be employed andexecuting the volume of command instructions supplied by the network.The control programs to be run by the controller processor for operatingthe system of the present invention are essentially conventional, oncethe objectives of the present invention are described.

The data storage devices associated with the controller processor can beessentially any conventional memory storage device, typically asemi-conductor memory in combination with a hard disk drive or a CD-ROMdrive with a compact disk. The memory device is employed to storeinformation on the preestablished accounts from which account holderstransfer funds to third party recipients. It will be assumed forpurposes of the present invention that the system operators have methodsof establishing accounts and placing money or establishing credit lineswithin these accounts and that proper accounting procedures are in placeto track the various transactions, all of which are standard in theindustry and well known to those skilled in the art.

For local self-contained systems, the controller processor is incommunication with the internal network of input and output devicesthrough cables or telecommunication lines. When the system is incommunication with an external network, telecommunication lines arenearly exclusively employed.

Essentially any input device capable of supplying command instructionsto the controller processor from account holders and third partyrecipients is suitable for use as an input device for the presentinvention. For purposes of the present invention, command instructionswill be considered to be issued by an account holder or a third partyrecipient if the instructions are issued by another individual on theirbehalf. For example, a bank employee may issue command instructionsrequested by an account holder to transfer funds for access by the thirdparty recipient. A store employee may issue command instructionsrequested by the third party recipient to obtain an electronic fundtransfer to pay for goods and services in a point-of-sale purchase.

External banking, credit and ATM networks have already been establishedusing as combination input/output devices stations that employ magneticcard readers in combination with manual input devices such as keypads,touch screens and the like, through which information required for thetransaction may be entered, such as the transaction amount, accountpassword, and so forth. One example of such a station is an ATM. Anotherexample is the magnetic card reader/keypad employed for point-of-saletransactions to obtain approval of credit card and debit cardtransactions. Such stations also serve as output devices for the systemsthat they serve. The ATM is adapted to deliver cash, print a receipt andrelay messages from the network processor via a CRT. The magnetic cardreader relays messages from the network processor via an LCD, and isalso adapted to print a receipt. When the system of the presentinvention is adapted to communicate with such an external network, thefund transfer command instructions may be issued by the third partyrecipients through such input devices, which will also function asoutput devices for the system, delivering cash, relaying messages fromthe controller processor and printing receipts.

Otherwise, essentially any conventional manual input device may beemployed, particularly with local, internally self-contained systems inaccordance with the present invention. Such devices include keypads,touch screens, mouse and cursor systems, and the like. It is notessential that magnetically encoded cards and magnetic card readers beemployed.

Likewise, any device capable of relaying messages from the controllerprocessor to the account holder or third party recipient is alsosuitable for use as an output device with systems of the presentinvention. Examples of devices include CRT's, LCD's printers, and thelike. In the simplest of local, internally self-contained systems, themachine vending of cash and printing of receipts is not contemplated.Instead, an employee of the system operator would attend to such tasks,receiving prompts from the controller processor through an outputdisplay device.

A particular advantage of the present invention is that the accountholder is provided with a periodic accounting of how the third partyrecipient of funds has spent the money accessible to them. This would bein the form of a statement issued daily, weekly, monthly, and the like,detailing cash withdrawals and debit card transfers. This is alsoperformed by essentially routine simple means ranging from e-mail todesktop publishing, or as complex as the systems employed by banking andcredit institution for generating periodic statements for conventionalaccounts. Such means are very well known and require no descriptionhere.

As noted above, it is not necessary that the system of the presentinvention employ magnetically encoded cards to provide system access toaccount holders and third party recipients. Instead, access to thesystem may be obtained through the entry of the requisite information byway of a manual input device, such as a keyboard, that is incommunication with the system. The information may be entered directlyby the account holder or third party recipient, or on their behalf by anemployee of the system operator or fund transfer payee.

However, the use of magnetic cards encoded with account information isparticularly preferred for the sake of convenience. The cards alsoeliminate the need for the system operator to hire employees to receiveand enter information that would be submitted directly to the system bythe account holder or third party recipient. In other words, it is moreeconomical for a bank to permit a third party recipient to access cashvia an ATM, rather than require the recipient to present themselves to abank teller. Magnetic cards issued to third party recipients will beencoded with an identifier correlated to the secondary file of thepreestablished account. The encoding of information fields on themagnetic stripe of a magnetic card is well known and essentiallyconventional and also need not be described here.

Turning now to FIG. 2, there is illustrated in block diagram form thecomputer-based method of the present invention, that shall be discussedwith reference to the system depicted in FIG. 1. Typically, the computerprocessor 12 creates in memory device 14 associated therewith customeraccount file 30 containing a record of funds deposited by the accountholder. The account holder inputs command instructions 32 input device16, typically a computer terminal or work station, which are transmittedby telephone lines 15 to computer processor 12 to establish a secondaryfile in the customer account. The account customer then inputs commandinstructions 34, usually contemporaneously with the establishment of thesecondary file using the same input device, to designate a third partyrecipient permitted access to the secondary file. Alternatively, thethird party recipient can be designated at a later time from the same ordifferent input device.

The account customer then inputs command instructions 36 to transfer tothe secondary file at least a portion of the record of funds containedin the primary file representing deposited funds accessible to the thirdparty recipient. Again, this is usually done contemporaneously with theestablishment of the secondary file and the designation of a third partyrecipient using the same input device. However, this step can also beperformed at a later time from the same or different input device.

In the embodiment illustrated in FIG. 2, the account customer inputscommand instructions 38 to designate payees of funds to be withdrawn bythe third party recipient subject to a limit on the amount of funds thatmay be withdrawn. Again, this may be done contemporaneously with theestablishment of the secondary file, the designation of the third partyrecipient and the transfer of funds from the primary file using the sameinput device, or this step may be performed at a different time usingthe same or different input device.

The computer processor 12 then verifies each withdrawal from thesecondary file requested by the third party recipient 40 to determinewhether it is subject to a limit in the amount of the transaction, andwhether that limit has been exceeded. At the same time, the computerprocessor verifies that there are funds available in the secondary fileto complete the transaction (not shown). The computer processor 12 sendsa disapproval signal 42 if there is a transaction limit that has beenexceeded, or an approval signal 44 if there is no transaction limit orif there is a transaction limit that has not been exceeded, alongtelephone lines 17 to output device 18. The approval or disapprovalsignal is also conditioned on the availability of funds in the secondaryfile (not shown). Typically output device 18 is part of a computerterminal or workstation that also includes an input device (not shown)through which third party recipients input electronic fund transferrequests.

The computer processor 12 also stores in memory device 14 associatedtherewith a file record of information 46 on each selected payee offunds and corresponding payment amounts. Periodically, the computerprocessor 12 provides to the account holder 48 the file record ofinformation on fund payees and corresponding payment amounts in the formof an itemized statement generated by output device 20, typically a highvolume printer.

To illustrate the inventive concept, the system of the present inventionand the computer-based method by which it is implemented will bedescribed with reference to a banking institution. The invention,however, is not limited to such applications, and those of ordinaryskill in the art will understand how this concept can be extended toother end uses in which a business customer wants to extend spendingcredit to a third party, but control how the credit is spent and receivean itemized statement of the spending. Furthermore, while the system andmethod are being described with reference to a banking institution, itwill also be understood by those of ordinary skill in the art that thesystem and method of the present invention may be employed equally aswell with similar accounts offered by credit unions, stock brokerages,lending institutions and insurance companies.

In particular, an account holder preestablishes an account with a bank,into which he deposits funds, at least a portion of which are to be setaside for a third party recipient. The data processing system of thebank stores the account information, as well as the information on thefunds deposited in the memory of the system. The data processing systemis programmed to set up the account with a primary file into which thefunds are initially deposited, and the capability to create one or moresecondary files into which all or some of the deposited funds may betransferred for access by a third party recipient.

At anytime thereafter, the account holder may issue command instructionsto the data processing system to create a secondary file. More that onesecondary file may be created, if the account holder wants to designatemore that one fund recipient. The command instruction may be issued bythe account holder, or by a bank employee on behalf of the accountholder, from a computer terminal at a bank branch. Alternatively, if thebank is equipped to allow customers to bank at home using their homepersonal computer, then this transaction can be handled in this manneras well. As another alternative, the bank can program its ATM machinesto serve as data input devices for this function as well.

The account customer provides the bank data processing system, whichserves as the controller processor of the system of the presentinvention, with identifying information on the third party recipient foruse in allowing the recipient access to the secondary file establishedon their behalf. The amount of funds to be transferred is alsospecified. The transfer can be established as a one time only event, orit can be programmed to occur periodically, i.e., daily, weekly,monthly, and the like. The periodic transfer can be programmed to occurautomatically, or it can be programmed to occur only upon entry of acommand instruction by the account holder. When periodic transfers areprogrammed, it will eventually be necessary for the account holdereither to stop the transfers when the funds in the primary file of theaccount are depleted, or to replenish the funds in the primary file withadditional deposits.

In a preferred embodiment of the invention, the account customer may, atthe time a secondary file is created, or at any time thereafter, issuecommand instructions programming the data processing system to placelimits on the amount of cash withdrawals or debit card purchases by thethird party recipient. The account holder may set for the third partyrecipient, for example, a daily, weekly or monthly limit on the amountof cash withdrawals and/or debit card transactions. The account holdermay want to block cash withdrawals entirely and only permit the thirdparty recipient to withdraw funds form the secondary file through debitcard transactions to obtain a more detailed accounting of how the moneywas spent. To block cash withdrawals, the account holder would specify$0 as the transaction limit for this type of transaction.

The account holder may also limit the amount of debit card transactionsfor specific classes of goods and services. Banking and credit cardinstitutions have already encoded merchants and service providers withthis information for billing purposes, so that it would not be difficultto similarly encode an approval request in a debit card point-of-saletransaction. Thus, an account holder may specify a limit on the amountof debit card transactions in bars and restaurants, for example. Anabsolute limit of $0 may be set, or the limit may be a daily, weekly ormonthly dollar amount. The data processing system would then beprogrammed to evaluate each requested transaction to determine if alimit has been set, and whether the requested transaction exceeds anyset limit. If there is no limit, or if the limit is not exceeded, anapproval signal is sent to the merchant or service provider. If a limitexists that is exceeded, a signal is sent disapproving the transaction.

The data processing system is also programmed to evaluate thetransaction request for fund availability, and to debit the secondaryfile after each transaction is executed. Subsequent transactions arethen evaluated against the lowered account balance.

A magnetic card encoded with an identifier correlated to the secondaryfile is then issued. The encoding of magnetic cards is essentiallyconventional and will not be described in detail here. The card may beissued to the account holder for delivery to the third party recipient,or it may be issued directly to the third party recipient.

The third party recipient then uses the card like any other ATM or debitcard to obtain cash from ATM machines, unless this feature has beenblocked, and to obtain goods and services from merchants and serviceproviders. And like any other ATM or debit card transaction, eachrequested transaction is submitted to the bank's data processing systemfor approval. However, with the system of the present invention, thetransaction is evaluated for possible limits on the amount of thespecific transaction, and an approval or disapproval signal is sentaccordingly.

The account holder is provided with a summary of the ATM and debit cardwithdrawals made by the third party recipient as part of his or hermonthly bank statement. The merchant or service provider is identifiedfor each debit card transaction, in addition to the date and the amountof each transaction.

To illustrate another embodiment of the inventive concept, the system ofthe present invention and the computer-based method by which it isimplemented will be described with reference to a casino issuingpromotional funds to a gambling customer. The casino managementpreestablishes a customer account file, into which promotional funds aredeposited. The data processing system of the casino stores the accountinformation, as well as information on the promotional funds depositedin the memory of the system.

The casino management at this time, or at any time thereafter, issuescommand instructions programming the data processing system to allocatethe amount of promotional funds that may be spent on particular classesof goods and services for each customer account file, which may betailored to an individual customer's spending preferences. Theallocation may also be designed to complement other casino promotions.Funds may be allocated for spending on food, lodging, entertainment,gaming, and the like. Within the amount of funds that are allocated forgaming, separate limits may be set for types of games, such as slotmachines, black jack, and the like. Likewise, within the amount of fundsthat are allocated for food, separate limits may be set for meals andalcoholic beverages.

The casino data processing system is then programmed to evaluate eachrequested customer transaction to determine if available funds areallocated. If funds are available an approval signal is sent. If not asignal is sent disapproving the transaction. The system is alsoprogrammed to debit the allocated funds upon execution of each approvedtransaction, so that subsequent evaluations are made against a new,lower allocation.

A magnetic card encoded with an identifier correlated to the customeraccount file is then issued to the gambling customer. Card readers arepositioned throughout the casino at locations providing goods andservices for which funds are allocated, such as restaurants, bars,theaters, gift and retail shops, hotel registration desks, slotmachines, gaming tables, and the like. The customer uses the card likeany other debit card to purchase goods and services from the casinousing the allocated funds.

The computer-based methods of the present invention do not requirespecial or unique computer programming for operation. Instead, thesystem features described above can be programmed following conventionaltechniques by individuals of ordinary skill.

The system of the present invention is also extremely versatile becauseof its ready adaptability to existing banking networks. Such networksmake it possible to set aside funds in a distant city for a third partyrecipient without regard for whether the bank of the account holder hasbranches in that city.

As will be readily appreciated, numerous variations and combinations ofthe features set forth above can be utilized without departing from thepresent invention as set forth in the claims. Such variations are notregarded as a departure from the spirit and scope of the invention, andall such variations are intended to be included within the scope of thefollowing claims.

1. A computer-based banking method comprising: creating an account for acustomer into which funds may be deposited and from which funds may bepaid upon request to designated payees; allocating funds deposited bysaid customer to said account; transferring funds upon request from saidaccount to designated payees subject to fund availability, wherein saidallocated funds are debited by the amount of funds transferred toprovide a lowered account balance against which future transfers areevaluated; and automatically sending a periodic e-mail to said funddepositor with information comprising said lowered account balance. 2.The method of claim 1, wherein said e-mail is sent daily.
 3. The methodof claim 1, wherein a statement account is generated monthly and may beaccessed by said customer using their home personal computer.
 4. Acomputer-based banking method comprising: creating an account for acustomer into which funds may be deposited and from which funds may bepaid upon request to designated payees; allocating funds deposited bysaid customer to said account; transferring funds upon request from saidaccount to designated payees subject to fund availability, wherein saidallocated funds are debited by the amount of funds transferred toprovide a lowered account balance against which future transfers areevaluated; and generating an itemized monthly statement account that maybe accessed by said customer using their home personal computer.
 5. Themethod of claim 4, wherein said monthly statement is sent by e-mail tosaid customer.
 6. The method of claim 4, wherein said statement is madeaccessible to said customer by their home personal computer as andalternative to supplying said customer with a printed statement.